tv Real Money With Ali Velshi Al Jazeera December 15, 2013 2:30pm-3:01pm EST
i'm richelle carey, thank you for watching. check out the latest on aljazeera.com. coming up on "real money," if you're considering a new job, we'll explain why now is the time to make your move. wall street bonuses and the new rules meant to protect the rest of us on main street. what you don't know about social security could cost you. there are hidden benefits worth tens of thousands of dollars that you probably didn't even know about until now. i'm david shuster in for ali vels velshi, and this is "real money." this is "real money," and you're the most important part of the show. join our live conversation the next half-hour on twitter.
we learn this money that america's jobs outlook could be headed towards a big jolt. that's according to the latest job openings and labor turnover or jolt report put out by the labor department. it counted 3.9 million job openings in october. that's a 7.7% jump compared to the same month last year. it's the largest number of jobs advertised in more than five years. this suggests that u.s. employers after years of caution are finally in a mood to expand. relatedly there are more signs of healthy churning in america's labor market. the number of job turnovers rose to 4.2 million in october, a 4.2% gain from the previous year. that includes an increase in the number of people voluntarily leaving their jobs to seek out better prospects elsewhere. more hiring, more opening and more people quitting the current position adds up to a dynamic job market. we received the overall job
numbers last week for the month of november, and those overall numbers showed the unemployment rate falling to 7%, the lowest level in five years. looking ahead, manpower group, a recruiting firm that conducts a quarterly survey of 18,000 employers nationwide says employer optimism pushed the net employment outlook to the highest level in five years. 17% of employers say they intend to hire more staff in the first three months of 2014. another 7% said they plan to reduce staff, and the remaining almost three-quarters surveyed said they intend to keep staff levels where they are or they're just not sure about the plans. manpower says the biggest hiring gains will be seen at the lower end of the scale in leisure and hospitality jobs and retail and wholesale trade jobs, but hiring will pick up on the higher end of the scale in professional and business services jobs. in the manufacturing sector a key driver of the overall economy, manpower found that staffing levels should remain
relatively stable going into 2014. and one big manufacturer we got news of a ground-breaking hire of sorts. mary barrow is the next ceo at general motors. she's the first woman to head one of the detroit's big three automakers. she replaces current ceo daniel abbingerson on january 13th. her 30-year career began as a student intern in 1980. she worked in gm plants and human resources. berra is widely credited for the successful rollouts of two new pickups trucks and the corvette and 2014 chevrolet impala which earned a top rating from consumer reports. by next year 21 states have a higher minimum wage than the national level of $7.25 an hour. as the debate about raising the federal minimum kicks into high gear, we decided to take a closer look at what higher wages have actually meant for the local economies in some states, states where employers already
have to pay more than federal law requires. stacey tisdale has the story. >> when you see images like these, it's easy to understand the emotional argument for raising minimum wage. many retailers say the length between minimum wage and stability is overblown citing evidence from states that pay more than the federal level of $7.25. >> states with higher minimum wages had lower job growth mostly driven by lower levels of job creation by expanding firms. >> experts point out that the number of people receiving minimum wage could not have a big impact on the economy at the state or national level. >> very few people are actually paid the minimum wage. only about 3% of the work force. the number of dollars involved are just very small. most of the people who are paid the minimum wage are relatively young. over a quarter of minimum wage earners are high school or college students. >> the five states with the
highest minimum wage, washington, known for the strong union activity tops the list at $9.09 and number two is oregon at $8.95 where 1 in 5 households rely on food stamps. vermont with the third highest at $8.60 recalculates the wage every year taking inflation into account. at $8.25 an hour, connecticut has the fourth highest minimum wage in the nation, but it also has the fourth highest cost of gross groceries in the nation and one of the most expensive states. illinois's minimum wage is $8.26 but it has one of the highest unemployment rates in the country. how much of an impact does a higher minimum wage have on a state's economy? in oregon a planned 15-cent increase on minimum wage on january 1, 2014 will put an extra $234 a year in the pockets of employees working 30 hours a week. >> i don't see any way in which
that very small amount of money for a very small proportion of the work force could spark economic growth. those funds come from someone else who now no longer has the money to spend. >> while the majority of minimum wage earners are young and will move up the income ladder, there are those struggling. many minority groups disproportionately depend on minimum wage, single mother among the minimum wage earners trying to raise a money on what amounts to $15,000 a year. many experts say there are better options out there than increasing income. >> there are options out there like the earned income tax credit, which maxes out at about $6,000 for a family with children that are much more powerful at helping people get out of poverty. they're targeted at low income families rather than like the minimum wage, a very blunt instrument that actually ends up transferring more funds to the teenage children of upper middle class families than to the working poor. >> but with the emotions surrounding raising minimum
wage, that debate will likely continue to be the focus of improving the economy at the states' and federal level. stacey tisdale, al jazeera, new york. it's official. banks can no longer make risky, speculative trades. on tuesday five regulators approved a volcker rule. it bans banks that take federally insured deposits from engaging in trading. there are some exceptions, but it's a major step towards changing the culture of risk taking on wall street that contributed to the financial crisis. the 900-page rule doesn't get into effect until july 2015. it attempts to protect main street by requiring banks to prepare pay packages that don't reward risky trading. this is the time of year that pay is very much on the minds of wall street, because we have now reached bonus season. this year wall street bonuses are expected to rise 5% to 10% on average, but jobs that involve taking big risks which used to pay the most and which
some critics blame for tanking the economy are no longer reaping the biggest rewards. pa tricia has the story. >> it's the big payday that fattens wallets on wall street and fuels the ire of main street. year-end bonuses can comprise up to 80% of wall street pay packages. this season payouts are expected to rise for the second year running, but the spoils won't be shared equally. a tepid deal climate means bonuses for investment bankers that advise firms on mergers and acquisitions are expected 5% to 10% lower than last year. the biggest losers are wall street's biggest risk takers, bond traders. they're expected to fall 5% to 10% thanks to low interest rates and wrong bets. >> the fixed income traders, they guessed it wrong with the tapering of the fed and so forth. so they were on the wrong side of the trades.
>> allen johnson produces a closely watched survey of wall street compensation. according to him, low-risk steady income generators like mutual fund and asset managers are this year's bonus winners and should enjoy a 10% to 15% bump on the heels of soaring stock prices. >> historically the big banks and investment banks with the highest-paying firms and we had a change where asset management firms that manage mutual funds and other things are paid as well if not more and that trend is likely to continue. >> while market conditions reward lower risk activities, regulators have tried to force change on wall street, strong arming banks to tie executive compensation to future stock performance. by pressing wall street firms to award bonuses primarily in deferred stock as opposed to up front cash they hope to discourage the short-term risk taking. ironically it could generate more outrage on main street
because this year's run-up in stocks means some bank heads collect huge payoffs. jamie dimon's 2014 package was roughly $14 million when awards. those best in shares are wovrt around $18 million. the same year that saw the bank get slapped with a record $13 billion fine. some believe the best way to drive more responsible behavior is to change how bonuses are calculated. >> right now most of your bonus is when they're calculating it overall they look at what profit did you make for the firm, and then some percentage of that you get as your compensation. the idea here would be to say, don't just look at how much profit you made for the firm but how much risk on behalf of the firm and how much did you expose the firm to in your activities? >> al jazeera, new york. last year the average salary for a financial securities employee in new york was $360,000 a year.
that's five times higher than businesses. facebook got an upgrade on wall street. the stock is added to the popular s&p 500 index, which is considered to be the best representation of the broader u.s. stock market. it's inclusion in the index means that facebook will also be added to many popular mutual funds and index funds held in retirement accounts. the company's move into the s&p will happen after the close of trading on december 20th. sure, the economy is improving, but a lot of americans are still getting left behind. coming up, a closer look at those who need a lift the most. you will see first hand what it's like to be homeless in america. later, you may be eligible for government money you didn't even know you had. we're talking about tens of thousands of dollars for the average american family. a report you cannot afford to miss coming up right here on "real money."
i'm going to pay the last respect for my president. >> he was a global symbol of hope, courage and freedom. >> the world thanks you for sharing nelson mandela with us. >> today was declared a day of reflection and prayer. >> now al jazeera america commemorates nelson mandela from the people who knew him. >> i think all of those people who were inside that stadium were very lucky to be there. >> an emotional look at the life and legacy of nelson mandela. >> only on al jazeera america. >> al jazeera america is the only news channel that brings you live news at the top of every hour. >> here are the headlines at this hour. >> only on al jazeera america. here is more. >> beneath the fluorescentsun in a former meat packing plant is the latest trim in farming.
they call it "vertical farming." these fields grow on floors on at industrial park and farmer john adel and his staff agrees user. >> my shipping proceed did you say 1500, 2,000 miles to get are. >> the plant of the indoor -- as the indoor formers call it doesn't grow corn or soybeans but mustard, high end micro greens on the plates of white-napkin restaurants. these fish supply the vert liser that number issues the >> an al jazeera america exclusive... former president jimmy carter reflects on the life and legacy
of nelson mandela. >> that spirit of nelson mandela is embedded deeply in the heart and soul of the south africans... >> they worked side by side for freedom, now president carter talks about mandela's global impact. a revealing interview you won't see anywhere else. >> i've never heard him say, that he was grateful to the united states... >> talk to al jazeera with jimmy carter only on al jazeera america the elite, the ordinary and nearly 100 world leaders gathered in and around johannesburg, south africa this week to honor nelson mandela. ali velshi was there to cover the events. his state funeral takes place this weekend in qunu in the eastern cape where mandela grew up. his 1994 election brought an end to apair thigh apartheid but years of oppression take a toll on the
south african economy. the divide between rich and poor has increased, and the problem is particularly bad in black communities like alexander township where mandela once lived. it underscores their challenges. here now is ali velshi with more. >> this is alexandria township surrounding johannesburg. it's where around apartheid blacks had to live because they couldn't live within the city limits proper. this is part of johan nusburg now, and a lot of people who live here work in johannesburg or near by pretoria. they were built by the government as promised since the end of apartheid. they have on top of the houses water tanks, hot water, the streets have electricity. they're paved. that's the promise. this is the unfulfilled promise. so many of the people that live in thiz townships still live in shanties. with tin roofs, and there are rats going through here.
this area was built in 1912 to house 70,000 people. the estimates range widely, but there might be up to three-quarters of a million people here. by the way, we're less than a couple of miles from the richest part of africa where there are more millionaires than anywhere else on this continent. talk about a bifurcated economy of have lots and have notes, we're right in the middle of it here. >> the american economy also faces challenges narrowing the divide between rich and poor. the u.s. conference of mayors released the annual report on hunger and homelessness. it found the ranks of the homeless have risen by an average of 4% this year in 25 cities you are is surveyed. that's individuals and families. what's worse, 22% of homeless people who need assistance did not get it this past year. there are many shades of homelessness in america. nearly a quarter of the homeless in our nation are children. 36% are families, and 19% of
homeless adults actually have jobs. for many of these fellow americans, changing the cycle is not easy. for a look at what it's really like to be homeless, meet julia cooley, a 33-year-old teacher's assistant in atlanta that lives with a 4-year-old son. >> right now it's about 10 to 6:00, so my bus should be coming up the hill. i'm commuting a total of five hours every day. i'm homeless because i'm place to place, and i don't have the stability. i take time to spend time with my partner sometime and then i spend time with my grandparents. can you say rise up? >> rise up. >> one of the common myths about homelessness is that a homeless person is typically sleeping under a bridge or on the street or suffering from mental illness. the reality for the families we serve is that homelessness is about women with children who have no place to go. >> today is a big day. i'm going to pick up my new keys
to my new place. a new two-bedroom apartment. today is a huge day. >> wait on me buddy. >> julia is a parent that came to our house to participate in the child development associate training program. >> she can sit up and see everything. it was just natural for me. i love singing the songs. >> our house provides early childhood education and family support services for families experiencing homelessness. >> i became homeless in may of 2008. i received a job and found out he was pregnant. for medical reasons i had to quit the job, which put me in a cycle of unemployment. >> my mom was just like, you know, we think you'd be better in a shelter. i'm like, how can a mom, you know, make that decision? how can a mom have that reasoning, that logic? >> for many of the families that we serve, when they come in, their lives are, if you imagine it, like a deck of cards.
they're stacking their successes carefully upon one another, but if you remove the wrong card, it can all come tumbling down. >> right now i'm working towards financial stability to pay my bills and have enough money to take my son to a movie, you know. i love you. have the best day. it will be good for me and my son to be in a house in our own environment. today is just so important to me, because come monday he will be in one place. let's go get those keys. >> what happened? >> no keys. got to get georgia power situated. situated. >> the things that did happen to julia are unfortunately typical when it comes to families moving forward with their lives. the reason is there's certain requirements that every agency has to have. >> i wanted to feel the keys in my hand. i wanted to be able to go to josiah and say we have our keys. at the same time, you
know, for him a meal will do. >> several months later she applied for a new position at our house which she hopes will bring in extra money. she hasn't gotten into her own apartment. at $9.15 she realizes she doesn't make enough to pay rent and make ends meet. to hear more of her story in her own words, go to our website, aljazeera.com/realmoney. it's like leaving money on the table. middle class americans missing out on tens of thousands of dollars of social security for things like child care and college tuition. we'll tell you how your family can get this cash, money you already earned coming up on "real money." >> i'm phil torres coming up this week on techknow... for some soldiersknow... the war never ends.
while you were asleep news was happening. >> here are the stories we're following. >> find out what happened and what to expect. >> international outrage. >> a day of political posturing. >> every morning from 5 to 9 am al jazeera america brings you more us and global news than any other american news channel. >> tell us exactly what is behind this story. >> from more sources around the world. >> the situation has intensified here at the border. >> start every morning, every day 5am to 9 eastern. >> with al jazeera america. with many of the glitches fixed at healthcare.gov more americans are signing up for private health care insurance through the obamacare exchanging. more than 258,000 people picked a plan compared to 106,000 in october. that brings the total enrollment through november to 364,682 on both the state and federal exchanges. that is still a long way from
the millions the administration wants signed uppy the end of march. the congressional budget office predicted 7 million by then. here's what's missing from the administration's numbers. we don't yet know what percentage of those who have enrolled are young, healthy adults whose premium payments will help offset the costs of caring for the sick. about 50 million americans receive social security benefit collecting on average about $1200 a month, and half of us get half of our retirement income from social security. but according to some experts, the average family leaves more than $120,000 on the table over a lifetime when it comes to claiming benefits. that's largely because the rules are so hard for even seasoned financial professionals to understand. but our own stacey tisdale now understands them and reports on the hidden benefits. >> with husband joseph already retired and her own retirement a few years away, judith anderson sought advice on how to maximize
her social security benefits. i thought you need to retire and you call them up and say you want to draw down on the social security. >> judith found out she could drawdown much more by claiming additional benefits to pay for her daughter lena's education. >> she's getting around $1,000 a month. >> they're taking advantage of a little known social security rule some financial planners call the viagra benefit. as long as one parent -- in this case her husband -- is 62 or older, they can claim an additional benefit for every child under the age of 18. it's half the value of the parent's. if the parent qualify force $2,000 a month, the child gets $1,000. that does not reduce the amount the parent receives. >> that's something that's increasingly important now as people have children later in life. >> another little known benefit actually pays your spouse for taking care of your children. to claim the care giver benefit, one parent has to be 62 or older and the child has to be under
the age of 16. your spouse, no matter how old, can get an additional payment that's half the size of yours. you get $1,000 a month and he or she gets 500. the money the care giving spouse receive does not reduce the size of your payments. there's a limit on the total amount of social security money any family can receive. that's 180% of what you and your spouse get combined. for example, if your base social security benefit is $1,000 a month, the total amount your family receives cannot exceed 1,800. you can, however, delay receiving your payments to avoid bumping up against those limits. >> the lower-earning spouse might want to collect benefits first and have the higher earning spouse defer benefits as long as possible. >> katherine and matthew help people get the most out of social security. >> there are millions of american out there that don't know how to maximize their social security benefits. it's so complicated they couldn't do it on their own.
>> they say another benefit clients are surprised to find out about is the divorce benefit. even if their ex is remarried. to qualify you and your exspouse must be at least 62 years old and your major must have lasted for ten years. the divorce has to be at least two years old. if your ex's benefit is higher than yours, you can claim half of that amount, even if he or she remarries, but you give up your own benefit. if you tie the knot, all bets are off. >> the social security administration does a great job, you know, in general, but they're not going to proactively reach out and say you're eligible for this, this, and this. >> there are more than 2,700 rules in this social security handbook. even the most seasoned financial professionals have a hard time understanding them. experts say use websites like the social security administration's or the aarp's to find out exactly what you qualify for, because for most americans ignorance is something
we simply can't afford. >> i'm looking forward to kicking back and enjoying the benefits of working hard all my life. >> enjoying money she made the old-fashioned way. she earned it. stacey tisdale, al jazeera, new york. >> the social security administration says the fund can keep making payment at the current rate until 2033. after that analysts say the options include cutting benefits, raising taxes and raising the retirement age. of course, none of those are popular positions for most politicians. finally, a cautionary note back here in the united states about college football fa nat simple. the michigan state federal credit union is encouraging students to take out a loan to follow the spartans to pass dean any. on new year's date they will play stanford in the rose bowl. i've been to a few rose bowl games. it's one of the great fan experiences in sports, however, be careful before you borrow money for any game or vacation. paying back $2,000
at 6.9%, the best rate offered, means you owe about 118 bucks every month for a year and a half. it's money you might otherwise spend on monthly school expenses or even adult frosty beverages. also, if you don't pay back the loan as scheduled, your post-college finances will be muddying by a lousy credit rating. from one big ten fan don't let any credit union leverage your school spirit to sell you a loan you can't afford. don't feel so badly about watching the game on television. it will feel just as great if your team wins and just as awful if they lose. trust me, i'm a michigan grad. that's our show for today. thanks for joining us. see you next week.
>> this is aljazeera.com live from new york si, i'm jonathan betz. thousands say goodbye to a favourite son. nelson mandela was laid to rest. it marks the end of 10 days of mourning. he died on december 5th, he was 95 years oldment >> the e.u. suspended effort to work with ukraine on tried agreements. demonstrators spent another day insisting that the president make the deal instead of working with russia. >> hundreds died in the